The rate cut is a huge relief for homebuyers. Home loan interest rates have risen by as much as 5 to 7 per cent in the last one year because the RBI hiked its repo rates by 50 basis points over the period.

For the consumers, the government has tried to boost sales of second homes by trying to relax norms for genuine self-occupiers, who already have a house. For self-occupied second homes, where family is living, consumers do not have to pay tax on notional rental income.

While back-to-back rate hikes in June and August had impacted buyers' sentiment in the interim, maintaining the status quo on policy rate in October and today, will reinforce the confidence of homebuyers.